Copper Sinks Further, Equities Stay Weak

Copper extended weak patch further today. The metal fell sharply on Friday on global trade worries and weak stock markets. US stocks slipped after President Donald Trump announced plans to impose a 25% tariff on $ 50 billion worth of Chinese goods that contain industrially significant technologies. Beijing has also warned that it was ready to respond. COMEX Copper is quoting at $ 3.11 per pound- down 1% on the day – lingering around its two week low. MCX Copper futures are trading at Rs 468.95 per kg- down 1% on the day. Equities slipped in Asia and Europe today amid sustained global trade worries and kept continued pressure on commodities.

Poor China economic data also hurt the red metal. Chinese industrial production grew 6.8% in May- slower than the 7% increase logged a month ago, the National Bureau of Statistics reported. The retail sales growth also eased to 8.5% from 9.4%. During the January to May period, fixed asset investment increased (FAI) 6.1% -down from 7% for January-April. Private investment rose at a faster rate than overall growth though. FAI by the private sector rose 8.1% year on year in January-May, up 1.3 percentage points from the growth in the same period last year.